The Proposal on formulating the 12th Five-Year Plan (2011 to 2015) was recently adopted at the fifth Session of the 17th Party’s Central Committee. A detailed plan will be released in the first quarter of 2011 after approval by the National People’s Congress.
The theme of the 12th Five-Year Plan is to balance wealth distribution; transform the economic development strategically; improve social infrastructure and enhance environmental protection. In the area of foreign direct investment, it is anticipated that there will no significant change on the policies of FDI. In the 10th Five-Year Plan (2001 to 2005), the Chinese government has announced the “go global policy” to encourage the Chinese entities to invest overseas. In line with the economic globalization and the RMB internationalization, the expansion of overseas investment would be prioritized in the 12th Five-Year Plan. In addition, the Chinese government has committed to make Shanghai an international financial centre by 2020, and thus changes on accounting and auditing standards are anticipated.
Finally, a number of taxation policies are proposed to be reformed in the near future in order to strengthen the taxation system, including Individual Income Tax, Value Added Tax, Business Tax, Property Tax, Consumption Tax and Resources Tax, Transferring Price and etc.